Argument Against Free Trade

Argument against free trade The major logics against free trade are: 1.Excessive dependence on foreign countries: Dependency hypothesis Neo colonialism in the veil of trade Secular decline in the terms of trade 2. Suppression of domestic industries: Causes: a. Uneven competition

b. Lack of benefits of large scale production in an underdeveloped economy c. Strategies adopted by the companies of developed countries to capture market in the LDCs o

Higher impact of international fluctuations:

a. Recessions in the trading partner (country) is transferred through trade. b. Market is affected by business cycle facts. c. There is high chance of imported inflation o

Adverse impact on the environment.

a.

Chance of excessive exhaustion of natural resources.

b. The harmful products may be imported. c. Excessive deforestation in LDCs to expand agricultural export